Know the Costs and Know How To Save on Air Freight Shipping

Air freight shipping, in most cases, is fairly complicated when it comes to pricing. But there are of course some areas when all you need is to look at the price list and voila- your parcel is already in mid air.

Letters and parcels are often priced based on the weight, size and the service level the shipper chooses. These are often fixed and seldom would one find great discrepancies in pricing. But as for air freight shipping prices, it is no good to be surprised at how high one item can cost.

The National Motor Freight Traffic Association has provided a system of pricing shipments known as the National Motor Freight Classification. This works on the principle of creating classes for items and for each class are some general prices.

Items are basically grouped into various types to make listing easier. This grouping is based on qualifications like loadability, mixed-environment appropriateness, density and a number of other factors. In general, freight classes apply to all items- from express letters to huge machineries including helicopters and planes. Freight classes range from 50 to 500.

Freight shipments are rated by means of "per one hundred pounds" parameter. However, other air freight forwarders make use of per hundred weight system and cwt.

Each freight class is able to provide discounts on the base rate. Plus, there is always a discount given on the transportation rates.

Nevertheless, such discounts can be set off by charges that are often treated as accesorial yet crucial to the base rate that would later come up for the shipment. The most commonly found accesorial charges and surcharges are discussed below.

To save on these charges, it is best to know your grounds first and study in full the terms and conditions of air freight shipping as provided by the freight company.

Lift gate- When there is no forklift or loading dock available, a lift gate service is billed to help drivers load and unload the shipments for residential pickups and deliveries or commercial pick up and deliveries. To avoid complications during the process, it is best that you notify the air freight service provider in case you see the need of a lift gate since trailers are rarely equipped with this item.

Additional fees in reconfiguring routes- Most air freight shipping are designed to follow a route of some sorts. If you require the company to take another route apart from what is earlier set, they would most likely charge you with additional fees for this extra work.

Extra charges on inside pick up and delivery- When you need to have your shipment picked up or delivered inside an establishment or a building, this will impede the carrier to finish his route on schedule. Thus, to set off the expenses they are likely to use, carriers will require you of some additional charges.

Residential pick up and delivery- To off set the costs incurred for transferring shipments to smaller trailers, most air freight shipping companies require extra charges on residential pick ups and deliveries. This is the case since most local laws restrain larger sizes of trucks from entering residential areas.

There are literally hundreds of possibilities for extra payments that would stock up on your final bill. For Less-than-Truckload and Truckload shipments, it is advisable that shippers seek for intermediaries who would not only guide them through the process but would also realize for them some forms of savings.

Your Guideline for Choosing the Type of Air Freight Services You Need

One's choice of air freight must be dictated by their immediate and long term needs which maximize the services provided by air freight companies. Obviously, one only has to avail of certain services that he truly needs.

There are various types of air freight services specially designed for specific purposes. While many may perform multiple objectives, it is still best not to tax yourself with money and time just by choosing the service that you don't actually require.

Since not all packages have the same size, weight, type of delivery and duration of delivery, air freight industry has created various methods and categories wherein customers may choose their needed type of service. In this article we would try to discuss in brief the various air freight services that you may choose from. Please read on.

The simplest form of cargo shipment falls under the household goods category which include items such as furniture, house accessories and pieces of goods similarly typed in this section. Since these don't normally require special services, your cargo may be delivered on the same day it was sent or depending on the service option chosen.

The second class of air freight is the express or overnight express delivery. These normally cover items such as mail letters, small envelops and other smaller items. Since they are relatively light, cargoes of this kind come in air freight company packaging. Two of the most notable air freight company rendering this service are the FedEx express and the UPS.

Depending on the available service options, prices and type of delivery may vary including the duration of travel. Most items in this category travel some distance through air and may go coast to coast in a couple of days or overnight.

The next category available is the ground or parcel shipment. Since items in this type are slightly larger and heavier than the first two categories, the shipping of items may take a number of days and may move anywhere from 500 miles a day to 700 miles. Most ground shipments weigh around 100 pounds or less and each item don't normally exceed 70 pounds.

Depending on the service provider, parcel shipments may either travel by road, rail and air. However the latter is rarely offered.

This shipment covers most of the business-to-customer type of service and is often used by companies that make use of cash-on-delivery system of purchase.

When you need is the service of shipping much larger and much heavier stuffs, you might want to look into your options covered by the freight shipments.

Less-than-Truck-Load is the service that you must avail if you have cargoes of less than 15 000 pounds. Most shipments of this kind cover business to business shipment and are often referred to as motor freights.

This type of air freight service often comes in mixed freight environment which means that cargoes are combined with some other shipments and can be transferred from one carrier to another, depending on the type of service the shipper has chosen.

Shippers are required to arrange for their packaging since most air freight carriers don't give any form of assistance in packaging the cargoes.
Meanwhile, Truckload Freights are the largest of this kind. They go anywhere from 15 000 pounds to 43 000 and length can extend up to 53 inches long.

This type of shipment is often mixed with other shipments in one equipment and arrives at the exact trailer they were shipped on.

How Does Air Freight Service Works

Our present day living is driven by the need to communicate, to be informed and to send various items worldwide. And due to time constraint and the immediate necessity to transfer everything in the fastest mode of transportation available, the airline and cargo industry devised ways of carrying cargoes while maximizing time incurred during the process.

Cargo shipment by air is now termed to as air freight service. Items shipped at this mode range anywhere from a couple of pounds to as much as 43 000 pounds. Therefore accommodating almost all items that need for immediate shipment.

Parcels and express letters are typically the easiest to ship due to relatively handy size and weight. For larger-sized items however, various methods of shipment are required for travel and services vary depending on the number of categories including:

§ The size and weight of the item
§ The duration (number of days) required for shipment
§ The type of item

There are four basic categories for shipments namely:

a. Household goods which cover items such as furniture and the likes.

b. Overnight express or express shipments that deliver personal and business items which are observably lighter and smaller in size. These often come in the packaging of the carrier or the service provider and are often delivered overnight or within a couple of days, depending on the choice of service the shipper agreed on.

Parcel delivery, on the other hand, covers those items that are typically boxed. The services vary and packaging may be provided by the company or should the shipper chooses, may be shipped on the box of their own.

The duration of delivery varies yet typical of this kind is the speed of 500 to 700 miles per day, providing it a coast to coast travel of around 4 days.

Beyond this types are the LTL and TL freights. These are the actual air freight services and obviously cover cargoes that need big-time shipments.

Items covered in this category often weigh 15 000 pounds to around 43 000 pounds and have lengths not exceeding 53 inches long.

For each type of service level comes different corresponding prices. Parcel and express packages have pretty simpler system of pricing as compared with cargoes covered in the Less-than-Truckload-Freight and Truckload Freight which have more complicated systems of pricing.

National Motor Freight Classification is the system of pricing that monitors and dictates what price must be given to each item depending on its loadability, density, mixability and a number of other factors.

Theoretically, fragile items require higher costs of shipment since they fall in the freight class 125 to 500.

Denser items such as industrial machineries and steel require lesser care yet take most of the weight falls under the freight class 50 to 85.

Generally, these freight classes have assigned prices for which the assigned class corresponds to the base rate given.

While most air freight service providers can be contacted directly, heavier cargoes require freight brokers for easier arrangements and for the facilitation of savings. Such brokers can be contacted through online marketplaces. They have the hand for directly arranging shipments at much lower rates since they act as intermediaries between carriers and shippers.

It is good to remember that when shipping cargoes with any type of air freight service chosen, you must know in full all the terms and conditions included.

Factors that Affect the Air Freight Rate

As with all expenses, air freight rates change all the time. This is because of the fact that many factors affect the pricing of various services and resources used in air freight. Learning about the different factors affecting the air freight rate could help you anticipate changes in the rate. This means that you will be able to maximize the costs of shipping.

What factors affect air freight rates?

1) Demand – demand affects the prices of everything. The more that people want to obtain a certain service, the higher the cost is going to be. This is the basic principle of economics. When the demand for certain shipping services rises, the air freight rates rise with it.

Demand determines the willingness of a company to part with its product. Demand determines the price because hey, if people are willing to pay more for your product, then you would be willing to sell it at the highest possible price, right?

2) The containers – the shipping containers, also known as the Unit Load Devices are designed to protect your cargo from the damages caused by the journey. Different items require different containers. If you are looking for a special container to protect your items, it could add a bit more to your air freight rate than what you anticipate.

The containers used in an air freight service are usually suited to different types of cargo. This means that the type of item you are shipping will affect the air freight rates. If you want to include additional security measures to protect your cargo, then you would have to pay more money. This is often applicable if you are shipping pets, livestock, or works of art.

3) Manpower – the amount and specialization of people required to ship your products will also affect the air freight rate. This means that the type of service you require will change the air freight rate. Do you wish your items to be handled by experts who will take care of your items, then you might need to add some cash in order to cover the additional manpower.

Manpower also includes the various people who will handle the paperwork of your cargo. Obviously, it will take the expertise of more than one person to make sure that your cargo remains as safe as possible.

4) Speed – this factor is second only to demand on its effects on the air freight rate. It is often the case that companies have different air freight rates based on the speed by which they can deliver your items. There are companies which offer faster delivery services for additional charges. There are companies who can deliver your items in one day, and some companies can even deliver your goods within a few hours.  The speed of delivery is very important because it is often the case that customers stick with an air freight service because of the speed by which they can get the job done.

Of course, there are many more factors that affect the air freight rates charged by various companies. These main factors, however, should prove to be enough information in order to help you save a lot of cash. When you study these factors, you would be able to budget your money easier and thus, maximize your resources. This means that you can ship more goods at lower air freight rates.

A Historical Look at the Air Freight Industry

During the early years of aviation, people were constantly looking for practical uses of airplanes. People were amazed with the machines that enabled men to fly, but the question of what to do with them plagued everyone’s mind. Of course, the uses for airplanes could not be limited to entertainment, because that would be wasting the huge potential of the technology on a pretty superficial industry. The air freight industry began with the journey of a bolt of silk from Dayton to Columbus, Ohio in November 1910. 

That fateful trip gave birth to the airfreight industry as we know it today. After that event, everything just progressed to new heights for the air freight industry. One of the pioneers of the air freight industry is American Railway Express. The name of the company points out to the fact that before the advent of the air freight industry, cargo was usually transported by train.

The airfreight industry made a lot of conveniences possible. First, there was the matter of speed. Air freight sped up deliveries between businesses. This means that the air freight industry made it possible for businesses to acquire various merchandise when they needed it. This also saved a lot of money on storage. Before the advent of the air freight industry, businesses had to keep as much stock as possible. This helped them to meet orders in time. Because of the introduction of air freight, businesses could just fly in any merchandise.

During the 1920’s, shipping of cargo via air grew more popular. In November 14, 1926, the National Air Transport Company was born. This company delivered the first air cargo in the United States in September 1, 1927. Many more companies were founded as promoters of the air freight industry. As the industry was still relatively young, these companies did not make much profit.

The air freight industry got to a slow start because of the fact that they had stiff competition coming from passenger carriers. Many established passenger carriers opposed the establishment of an all-cargo air freight industry mainly because they feared it would destabilize the air industry.

Another reason why the air freight industry did not grow as people hoped was that most businesses were unable to sustain the huge losses associated with starting an air freight operation. While some people attempted to remedy this by combining air freight with air passenger transport, they only succeeded in slowing down the industry.

The revolution of the air freight industry came about when a man named Fred Smith noticed that the common practice of combining air freight with passenger freight was highly inefficient. He proposed that air freights should have different flight patterns from passenger flights. He was successful in gathering funds mainly because of his proposal for a guaranteed next-day-delivery service. And so it was that in April 1973, the Federal Express began operations. Of course, the initial years of business were hard. However, after three years of flying cargo, the company was beginning to show profit.

By the 1980’s, Federal express was a household name. This just goes to show you how far a truly great idea can take you. Today, the air freight industry is booming and companies make millions of dollars in profits. That’s a far cry from the way that air freight businesses lost money in the past.

The Trend in Favor of Air Freight Forwarders

Globalization, internet, improvements in communication and transportation and a number of other new trends has changed the world beyond our own reckoning. They have become so fused with our lives that our daily moves are largely dictated by the uses of all these.

Maybe these changes in times are inevitable. They seem to have been designed to accommodate our growing need for improvement and faster living. But when life gets too fast, what will come next? Well, at this rate we all can say that we have not reached our limits yet. Our lifestyle sure have changed a lot and everything else followed. Business, education, government- just to name a few.

Globalization definitely has affected businesses in ways that it eliminated both the non-performers while taking the best performers to newer heights. Thus, the survival of the fittest.

Those who found value in adapting to current trends have made themselves famed in the industry. Those who refused to take the risks of experimentation have failed and dripped down towards eventual failure.

You, as an ordinary citizen, a businessman or an individual who simply have to accept the changes must not get tired of kicking with the trends, unless you want to be counted off the performers.

Air freight industry is one such change that has affected people's lives worldwide namely the consumers and the suppliers.

Air freight is hardly a new emerging business. It has actually existed since the early 80's and has been growing since. However, it only realized its actual use recently when newer airplanes, cargo planes and systems have been devised.

There are basically a number of categories services that accommodate each type of air freight forwarding needs.

The Household Goods division is dominated by air freight forwarders such as the North American Van Lines and the Benkins. This primarily serves shippers who want furniture, and other household items be transferred or delivered towards end consumers.

Apart from the freight shipments, the most often utilized services of air freight forwarders is the express shipments which cover deliveries of express mails and items of same category. Top grossers in this field are FedEx Express and DHL.

The parcel division, on the other hand, carries boxed items to their recipients. Such services are render by air freight forwarders like FedEx Ground and UPS. Depending on the service level a shipper chose and the availability of service, parcels can be carried over 500 miles and above for around three days or more.

Beyond these services are the freight shipment. This is basically sub-grouped into two: LTL and TL.

Leading air freight forwarders in the LTL division include names like AAA Cooper, Southeastern and Old Dominion. While forwarders like Schneider and JB Hunt dictate the game in the TL field.

While shippers can directly contact these forwarders through their websites, such business are often recommended to pass through online brokers. These are the institutions that have the hold for all contacts and necessary information to keep shipments on time and at their best condition.

Air Freight Containers Facts

Some may think that a person’s interest in knowing about air freight containers is weird. Many people tend to take objects and containers for granted. Think about the last gift you got. Do you remember exactly what item it was? Now, do you remember what was used to wrap it?

People tend to ignore these details because they think that the present is more worthy of focus than the box it’s carried in. Many people tend to forget that the box is what protects the present in the first place. Knowing about air freight containers is very important as it allows you to realize the conditions that your cargo goes through when it is being delivered. You can see whether a certain air freight container is suitable to protect and to hold your cargo.

Did you know that the term “air freight container” is rarely used by people working on airlines? The proper term is actually “unit load device” or ULD. This fact alone can help you in making faster inquiries regarding air freight.

Another fact about air freight containers that you should know about is the fact that there are actually standards used to determine the quality of an air freight container. In fact, there is actually an association which determines the specifications of air freight containers. This is to make sure that all manufacturers of air freight containers make their products as uniform as possible. This means that there will be no substandard products.

The International Air Transport association is in charge of the details concerning air freight containers. This association is responsible for setting the standards that would ensure the correct transport of cargo.

Here are some of the details that they specify:

1) Container size – of course, standardization of the air freight container size is important. It helps people determine if the type of air freight container that they got can actually be used in transporting their cargo. This also makes it easier for companies to determine which type of air freight container is appropriate for their cargo. Knowing this is also very important in determining how much space your cargo will take up in a plane.

2) Door – it is necessary to standardize the doors of air freight containers in order to make sure that people are able to actually get their cargo to fit into the container. The door size is not the only factor that’s standardized. The material used to make the door is also standardized. This is done in order to make sure that the cargo is protected from any potential hazard.

3) Modifications – different types of cargo require different types of air freight containers. These modifications are also standardized in order to help determine the dimensions of an air freight container easier. This of course, saves a lot of space and money. The modifications could be designed to accommodate the safety of various cargos, or it could be designed to ensure the comfort of animal cargo.

4) Material – the materials used in the making of air freight containers are also standardized. This is done in order to easily determine the weight of the cargo and container. This of course, is very important since it determines the efficiency of any vehicle to transport cargo. The materials used in making air freight containers also have a big impact on the protection of the cargo.